Why Berry Global (BERY) Shares Are Surging Today - (BERY)

Berry Global Group Inc BERY reported a fourth-quarter FY22 sales decline of 6.7% year-on-year to $3.42 billion, missing the consensus of $3.63 billion.
Net sales were flat on a comparable basis as a 2% organic volume decline was partially offset by increased selling prices of 2% due to the pass through of inflation.
Selling, general and administrative expenses declined 7%. The operating margin was 9.8%, and operating income for the quarter rose 7.7% to $336 million.
Adjusted EPS of $2.19 beat the analyst consensus of $2.13.
Operating EBITDA increased 2% to $539 million in Q4.
The company held $1.4 billion in cash and equivalents as of October 1, 2022.
Outlook: Berry sees FY23 adjusted EPS of $7.30 - $7.80 versus the estimate of $7.80.
It expects to return at least $700 million of capital to shareholders through share repurchases and dividends.
Berry announced the initiation of a quarterly cash dividend of $0.25 per share on its common stock and increased the capacity in its existing stock repurchase program to $1.0 billion.
It sees FY23 free cash flow of $800 million - $900 million.
Price Action: BERY shares are trading higher by 4.79% at $53.49 on the last check Tuesday.

Berry Global Stock Gains On Q4 Bottom-Line Beat, Quarterly Dividend Initiation